The business is not looking to reduce its ownership of ITC Ltd to less than 25% at this time, according to British American Tobacco Plc (BAT), as that is the minimal amount required for them to maintain influence over the Indian tobacco manufacturer.
During a conference call with investors, the statement refutes rumours of a significant share sale. According to the British company’s statement, only a 4.03% interest might be available, subject to approvals.
With a 29.03% interest in ITC, BAT is the single largest investor in the corporation, but it is not considered a promoter.
On February 8, ITC’s stock fell 4.02% as a result of BAT’s revelation that it intended to sell a portion of its ownership in the Indian business. Concerns among investors include the possibility of a spike in the number of shares that are available for trade and how this would affect share prices.
The BAT management brought attention to the difficulties in offloading its ITC holding in December. They identified two primary obstacles: the prohibition on foreign direct investment in tobacco by the Indian government and the need for RBI approval for any move pertaining to stakes. Potential buyers are restricted by the restrictions, which could result in a sale value discount.
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